Is the Apple Watch tax deductible in the U.S.?

“I know many of you die-hard Apple fans have already been to an Apple Store and tried on the new watch,” Mark J. Kohler reports for Entrepreneur. “Others of you have probably seen the ads and wondered if — or rather how — this new device will truly change your life for the better. ”

“So wouldn’t it be nice if the Apple Watch was also deductible as a business expense?” Kohler reports. “It should be, right? You need it in your business in order to be more effective and efficient as a communication tool and the IRS should see it our way… well… maybe hold the phone for a moment.”

Kohler reports, “At least some portion of your Apple Watch should be tax deductible, and it will depend on your business use of the functions.”

Read more in the full article here.


  1. If it’s anything tax related, you may have to prove it. 100% business use for tax, and its probably 50/50.

    Otherwise it might not be worth the headache.

    I say, go for it, you never know. Try it with the 42mm Edition.

    1. That depends on the percent of business use vs. personal use, which will be the same for the deduction amount, i.e., if you can justify 75% business use, you can deduct 75% of cost.

  2. Claim that it is for some liberal/progressive cause and the IRS will leave you alone. If you are conservative, you are going to get audited anyway.
    Welcome to the abuse of government power from the Obama administration.

    1. abuse of government power? the administration has done nothing that previous ones hadn’t done before. And thanks to budget cuts, agencies like NASA, the IRS, and others are in major downsizing mode. meanwhile the USA just recorded one of the longest economic bull markets in history, tax rates are as low as ever, and the borders are more secure than ever.

      Get a clue George!

      1. eorge, you should get a clue. The IRS had several years of MAJOR hiring increases and huge budgets for technology upgrades (including training and staffing) before the last year or two of budget cuts, which the IRS conveniently decided to cut anything involving customer service to levels far less that several years ago, rather than cut administration levels, etc.

      1. Claiming a purchase was for a liberal/progressive cause will get you nowhere. If you get audited, you simply need to have your documentation, have it organized, and have you CPA who prepared your taxes accompany you. The IRS asks its questions, you produce documents to prove your side, and it’s over. Where people get into trouble is when they show up with years of no tax returns, or a shoebox of receipts and can’t find anything, etc.

  3. If you’re an app developer, the Apple Watch is easy to write off. Just try your hand at developing a Watch App. If it had a browser, then anyone who does work building things for the web (content/design/develop) can easily write it off.

    1. It’s not so easy. If it’s the $349 or $399, it’s one thing (even if it raises flags), but if you’ve gone for a more expensive edition, then it’s clearly not used for business (as a developer) 100% of the time.

  4. As always, the real answer to a tax deductibility question is: “It depends on the aggressiveness and willingness of your CPA to deduct it.”

    But the way the IRS tries to hold CPAs liable for what their clients do, risk-taking CPAs are about as hard to find as a properly-inflated Patriots football.

  5. This is such funny timing. I just got off the phone with my accountant. I have the 42mm SS ML (and a couple of sports bands). I was going with the thought that $399 should be deductible since it’s the minimum amount for me to use the device for what I need to do for my business. It’s a tough call though and I’m not sure it’s worth the risk/effort.

  6. It’s not worth the risk of an audit flag. The cost in your time, even if they find nothing wrong with you return, will far outweigh the deduction savings.

  7. As if the IRS checks how much I use my business computer for Facebook, or my cellphone for personal calls … It’s not going to happen. The Apple Watch is just another computer that helps you get things done, be responsive to clients, and get to meetings on time.

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